The Difference Between Estate Planning and Life Care Planning |
![]() Michael WeinraubEsq., Certified Elder, Law Attorney |
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The Will is the legal document that transfers your property at death. The Will nominates an Executor whose job it is to gather the assets, pay the taxes and debts of the estate and to distribute the remaining assets to the beneficiaries under the Will. When selecting a fiduciary of any type the most important thing to keep in mind is that you must select someone that you trust.
Tax planning is an important issue for some people who have significant assets and who wish to keep as much of their hard earned money as possible to pass on to their loved ones without paying any unnecessary death taxes. In New Jersey, we have three different death taxes; a federal estate tax, a state estate tax and a state inheritance tax. The two estate taxes are based on the amount of assets in your estate and the inheritance tax is based on who is receiving the assets from your estate.
A “power of attorney” is a legal document where an individual authorizes another individual to perform specified acts on behalf of the principal as the principal’s agent. The power of attorney becomes durable when it is not affected by the subsequent disability of the principal. Disability means the principal is unable to manage their property and affairs effectively. A general power of attorney is intended to give broad powers to the agent to make decisions on behalf of the principal, while a limited or special power of attorney is designed to restrict the agent’s powers. A power of attorney is the single most important document to have as part of your estate plan, so that another individual will have the legal authority to carry out your wishes if you can no longer act for yourself.
An Advance Directive is a document outlining the patient’s wishes to be carried out in case of incapacity. A Living Will sets forth the patient’s treatment choices, including the possible withholding or removing of life-sustaining treatment, in the event the person is in a terminal condition or vegetative state. A Health Care Power of Attorney appoints a surrogate to make health care decisions during the patient’s incapacity. Generally a properly prepared Advance Directive will include the features of both of these documents.
A Life Care Plan describes how our team will meet the elder’s medical, long-term care, legal and emotional needs during long-term illness or incapacity – until the end of life. The benefits to the family include freedom from the burdens of care-giving, relief from anxiety about paying for care, guidance with every legal, health care and long-term care decision for the rest of the elder’s life, confidence that comes from having a plan for ongoing care as the elder’s condition progresses, security because the spouse and dependents are provided for and peace of mind because the right to quality care is protected. The benefits to the elder include obtaining the right care sooner, preservation of independence for as long as possible, the ability to age with dignity, and the security of knowing that you have an advocate dedicated to maximizing quality of life.
The Life Care Plan places special emphasis on issues surrounding a long life. The Life Care Plan connects your concerns about long-term care as you go through the later stages of your life with the knowledge and expertise of an Elder Law Attorney and an Elder Care Coordinator who will be with you and your loved ones every step of the way to assist you in making the right choices.
There are three principal goals of the Life Care Plan that we will help you develop and implement:
First, helping you and your loved one obtain good care, whether your care is provided at home or outside the traditional home setting such as an assisted living facility, or if necessary, a nursing home. This is the most important of all goals, for it goes to the very heart of your quality of life in your later years. Your Life Care Plan is focused first on your good health, safety, and well-being.
Second, helping you make decisions relating to your health care, long-term care, and special needs. It is a comfort and a relief to our clients and their families to know that they always have a resource of experienced, knowledgeable, supportive, and objective advisors with them every step of the way.
Third, helping you find resources to pay for good care, and helping you spend your money wisely and prudently on your care needs. The Life Care Plan protects and preserves the assets you have accumulated during a lifetime of hard work, thrifty behavior, and astute investment decision making. We work with you through the maze of choices and options to find the best solution to pay for quality long-term care.
Life Care Planning is an innovative approach to elder law that helps families respond to all of the challenges presented by long life, illness and disability. Peace of mind for the elderly and their families is the goal of every Life Care Plan.
- By Michael Weinraub
- Elder Care Law
- Published 05/8/2008



